Getting Prepared for a Mortgage Application

When applying for a mortgage, it is important to have certain documents ready. Our Mortgage Advisors can talk you through what information will be required and help get you “mortgage ready”.

Taking some time to gather all necessary documents and information at the beginning will lead to a faster and smoother process overall.

Updated credit report

It’s helpful to obtain an up-to-date credit report when applying for a mortgage; our Mortgage Advisors can help with this. They will review the report before choosing the best lender for you.

It’s essential to get it right the first time, and having this information will be beneficial. Being registered on the voters’ roll and closing unused credit cards can also boost your credit score.

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Proof of identification

To verify your identity, you will be required to provide proof of identification. Most customers use their driving license or passport for this purpose. It is important to ensure that both documents are not expired and that your driving license displays your current address.

If you are a non-UK national working on a visa, you’ll need to provide that too.

In addition to the proof of identification you must also provide proof of your current address. This can be done by presenting a utility bill or original bank statement dated within the last 3 months. Alternatively, you can use your driving licence if you are using your passport as ID.

Proof of income

To ensure affordability, it’s important to show evidence of your income.

If you’re employed, you can provide your last three months’ payslips, and some lenders may also require your most recent P60. Mortgage lenders may also consider additional regular income sources such as overtime, commission, shift allowance, and bonuses.

In certain cases, lenders may accept earnings from multiple employers, such as if you have a part-time job or a self-employed “side hustle.”

Nowadays, many applicants are self-employed; if this applies to you, your accountant can assist you in obtaining proof of earnings from the revenue for the past two or three years. If you’re submitting your own accounts, please reach out to us and we’ll provide guidance on what to download from the Government Gateway.

3 months bank statements

You will also need to provide three months of bank statements showing your income and regular expenses. To increase your likelihood of approval, it’s advisable to avoid gambling transactions or frequently exceeding your overdraft limit. Your bank statements should display your salary deposits and bill payments.

Proof of deposit funds

To comply with anti-money laundering regulations, you must show proof of having the necessary funds for the deposit. We would advise against transferring money between your accounts excessively, as it can complicate tracking the audit trail.

Mortgage lenders prefer to see a steady increase in your savings, so any significant recent deposits must be explained and accounted for. Nowadays, many people receive deposit money as a gift from family members, which also needs to be verified. In such cases, the donor will need to sign a letter confirming that the money is a non-refundable gift and not a loan.

Income and expenditure

Before moving to a new house, it’s important to estimate your expected expenses. This includes council tax, utility bills, and regular costs such as food and drink. By doing so, you can determine your disposable income and how much you can allocate towards your mortgage payments and insurance policies.

Written by
Malcolm Davidson
Managing Director of UK Moneyman Ltd.
MAQ & CeRER Qualified

29th February 2024

About the Author

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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